Use the Following Information to Answer the Question

question 38

Multiple Choice

Use the following information to answer the question. A janitor at a large office building believes that his supply of light bulbs has a defect rate that is different than the defect rate stated by the manufacturer. The janitor's null hypothesis is that the supply of light bulbs has a defect rate of p = 0.09 (the light bulb manufacturer's stated defect rate) . Suppose we do a hypothesis test with a significance level of 0.01. Symbolically, the null and alternative hypothesis are as follows: H₀: p = 0.09 and H_a: p > 0.09.
-The janitor calculates a p- value for the hypothesis test of approximately 0.113. Choose the correct interpretation for the p- value.

• A)The p- value tells us that the true population rate of defective light bulbs is approximately 0.113.
• B)The p- value tells us that the probability of concluding that the defect rate is equal to 0.09, when in fact it is greater than 0.09, is approximately 0.113.
• C)The p- value tells us that if the defect rate is 0.113, then the probability that the janitor will have 33 defective light bulbs out of 300 is approximately 0.113. At a significance level of 0.01, this would not be an unusual outcome.
• D)None of these

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Definitions:

Adjusted Trial Balance

The Adjusted Trial Balance is a list of all accounts and their balances after adjusting entries are made, serving as a checkpoint before financial statements are prepared.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used to verify the equality of debits and credits.

Net Income

Profit calculated as the difference between total revenues and total expenses, indicating the financial performance of a company over a period.

General Ledger

A complete record of all financial transactions over the life of a company, used to compile the financial statements.